The stock market has witnessed an extended sell-off this year due to the Federal Reserve’s aggressive interest rate hikes to combat rising inflation and consequent economic slowdown. Fed policymakers indicated further interest-rate hikes in the upcoming quarters after last month’s biggest hike since 1994. The tightening of monetary policy raises recession concerns and will likely keep the market under pressure.
The market sell-off has led to the S&P 500 declining 18.1% year-to-date. At the same time, the Dow Jones Industrial Average and the Nasdaq Composite Index have declined 13.6% and 25.7% year-to-date, respectively.
